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V0114-19 17 January 2019 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · exención por trabajos en el extranjero

Requirements for IRPF exemption for foreign work

A company asked whether workers sent to Chile could benefit from IRPF exemption for foreign work. The DGT clarifies that the exemption does not apply if the work is carried out in the company's own interest, but may apply if provided to a non-resident entity or through intragroup services that generate benefit to the recipient.

The question raised

Treatment of withholdings to be applied on account of Personal Income Tax in relation to the two seconded employees.

The DGT's ruling

To apply the exemption under Article 7.p) of the LIRPF, the work must be effectively performed abroad for a non-resident entity or a permanent establishment abroad. If the service is intra-group, it must produce an advantage or benefit to the non-resident entity to satisfy the requirement. In the case of commercial activities carried out in the interest of the Spanish company without a permanent establishment in the destination, the exemption does not apply. Per diem allowances for subsistence and accommodation are exempt provided they comply with the limits and requirements of Article 9 of the RIRPF.

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